Yahoo 2008 Annual Report Download - page 14

Outside of native English speaking countries, we provide some of our most popular user services through Yahoo!
Asia (our English language portal to Southeast Asia), Yahoo! Chinese (United States Chinese language site),
Yahoo! Canada en Français (French Canadian site), and Yahoo! en Català (part of Yahoo! Spain’s Catalan
language offerings).
We own our international operations (except in Australia, New Zealand, China, and Japan where we have joint
ventures and/or minority interests). We support these businesses through a network of offices worldwide.
Revenues are primarily attributed to individual countries according to the international online property that
generated the revenues.
Information regarding risks involving our international operations is included in Part I, Item 1A. “Risk Factors”
of this Annual Report on Form 10-K and is incorporated herein by reference.
SALES
We maintain three primary channels for selling our marketing services: direct, online, and telesales. Our direct
advertising sales team focuses on selling our display and search marketing services and solutions to leading
advertising agencies and marketers in the U.S. Our online channel operates and is fulfilled by a self-service
program that enables advertisers to place targeted text-based links to their Websites on Yahoo! Properties as well
as on our Affiliate sites. Our telesales channel focuses on sales of marketing services to small-and medium-sized
businesses.
We employ sales professionals in locations across the U.S., including Atlanta, Boston, Chicago, Dallas, Detroit,
Hillsboro, Los Angeles, Miami, New York, San Francisco, and Sunnyvale. In the international markets, we have
either our own internal sales professionals or we have established sales agency relationships in 50 countries.
No individual customer represented more than 10 percent of our revenues in 2006, 2007, or 2008.
Internet usage is subject to seasonal fluctuations, typically declining during customary summer vacation periods
and most active during the fourth quarter holiday period due to increased online retail activity. This seasonality
has affected and we expect will continue to affect our business and quarterly sequential revenue growth rates.
MARKETING
The Yahoo! brand is one of the most widely recognized in the world. Maintaining and growing that brand
enables us to attract, retain, and more deeply engage users, advertisers, publishers, and developers. We believe a
great brand begins with great products, services, and content. Our marketing teams engage in each step of
product and services development, deployment, and management and content design to understand our offerings
and how best to market them to our communities of potential and existing users. Our marketing communications’
efforts help accelerate product momentum, awareness, adoption, and engagement. We use online, television,
print, radio, and outdoor advertising, and we leverage our global online network and our distribution partnerships
to market our products and services to the right people at the right time. With continued investment in global
brand and product marketing, we believe we can continue to attract and engage users, advertisers, publishers, and
developers.
COMPETITION
We operate in the Internet products, services, and content markets, which are highly competitive and
characterized by rapid change, converging technologies, and increasing competition. Our most significant
competition is from Google Inc. (“Google”), Microsoft Corporation (“Microsoft”), and Time Warner Inc.’s
America Online business (“AOL” or “America Online”), which each offer an integrated variety of Internet
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